Source: Star Biz, Wednesday August 29, 2007

KUALA LUMPUR: The National Water Services Commission (SPAN) is expected to issue guidelines to all water and sewerage asset owners and operators in Peninsular Malaysia and Labuan by early next year to register with the commission and subsequently apply for licences to operate.

Chairman of the regulator of water and sewerage services Tan Sri Zaini Omar said the licences - individual and class - would be issued for operators/service providers and asset owners.

He told a press conference yesterday that companies or state water agencies that did not register or apply for licences could be penalised.

Under the Water Services Industry Act (WSIA) 2006, which comes into effect on Jan 1, 2008, owners or operators of water supply or sewerage services systems are required to have licences.

After the guidelines are issued, they will be given three months to register, which is part of the transition and migration plan that has been mapped up to reorganise the water and sewerage services sector in the peninsula and Labuan.

A SPAN statement said the formation of the commission was not to promote water privatisation, as feared by some quarters, but rather to promote a holistic and efficient water services management.

One approach to achieve this is to corporatise all state water supply authorities to enable them to operate as efficient corporate entities under the control of the Government, via SPAN.

The statement added that under the new water regulatory regime, there would be one regulator, and uniformity in legislation, rules and regulations, tariff setting principles and procedures. 

There would also be standard key performance indicators and operating procedures, besides standard product certification procedures. 

SPAN, approved by Parliament in June 2006, came into force on Feb 1, 2007, funded by a launching grant of RM20mil.

Its role is to advise the Energy, Water and Communications Minister on the national policy objectives, implement and enforce the provisions of WSIA.

In addition, it will also supervise and monitor water supply and sewerage services as well as utilities. It has been entrused to review and recommend tariffs.

For consumers, a water forum will be set up for them to make recommendations and feedback on matters of interest in the water and sewerage sector to SPAN.